Which of the Following Statements Is Correct

question 195

Multiple Choice

Which of the following statements is correct?

• A)Hidden actions and hidden characteristics are both associated with the moral-hazard problem.
• B)Hidden actions and hidden characteristics are both associated with the adverse-selection problem.
• C)Hidden actions are associated with the moral-hazard problem, whereas hidden characteristics are associated with the adverse-selection problem.
• D)Hidden actions are associated with the adverse-selection problem, whereas hidden characteristics are associated with the moral-hazard problem.

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Definitions:

Individuals

Single human beings as distinguished from a group, society, or community, focusing on their unique traits and decisions.

Implicit Racism

subconscious bias or prejudice towards an ethnic or racial group, which influences attitudes, actions, and decisions in an unconscious manner.

Explicit Racism

Openly stated or demonstrated prejudice and discrimination based on race.

Conscious

The state of being awake and aware of one's surroundings and experiences.